Selecting a Sample of Production Cost Reports and Vouching Material

question 18

Multiple Choice

Selecting a sample of production cost reports and vouching material costs to issue slips and materials-used reports,is a procedure designed to test the control objective of _________.

• A)authorization
• B)Validity
• C)Completeness
• D)Accuracy

---

Definitions:

Inventory Cost Flow Assumptions

Assumptions made about how inventory costs move through a company's financial statements, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost methods.

Descriptive Statements

Statements that provide detailed information or explanation about a specific topic, often used in documentation or reporting.

LIFO

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first ones sold, affecting the cost of goods sold and inventory valuation.

FIFO

First-In, First-Out; an inventory valuation method where goods first purchased or produced are sold or used first.